Over the past decade, smartphones have become essential tools for communication, work, education, financial inclusion, and connectivity. Yet, billions of people around the world still cannot afford mid-range or high-end devices. This affordability gap is driving massive growth in the low-cost and Pay-As-You-Go (PayGo) smartphones market, attracting significant investment from global manufacturers and distributors.
But why is this segment so strategic?
In this article, we explore the top 5 reasons manufacturers see low-cost smartphones and PayGo smartphones as the next frontier of growth and how they are triggering an unprecedented race for market share in emerging markets.
1. The Untapped Market Potential
Large parts of Africa, South Asia, and Latin America remain underserved in terms of smartphone penetration. Many consumers in these regions still rely on basic feature phones due to cost barriers and lack of financing options.
By offering affordable smartphones and financing solutions like PayGO smartphones, manufacturers unlock hundreds of millions of new users who represent the next wave of digital adoption and financial inclusion.
📊 Today’s ~4 billion smartphone connections are nearly double what they were just three years ago.
2. Gateway to Digital Ecosystems
Affordable smartphones are not just devices — they are entry points into the digital economy.
With access to low-cost internet and PayGo smartphones, users can engage in:
Mobile banking
E-commerce
Digital education
Telemedicine
Government services
Even if margins per device are slim, the lifetime value of users through apps, mobile money, and digital services is substantial.
3. Supporting Pay-As-You-Go (PayGo) Models
Affordability alone isn’t enough. PayGo smartphone financing which enables installment payments and flexible credit options makes smartphones accessible to those excluded by upfront costs.
At Upya, we see every day how combining low-cost smartphones with PayGo smartphone software solutions such as loan management systems, inventory tracking, and remote locking technology — accelerates adoption and enables sustainable operations for distributors and mobile operators.
4. Enabling Inclusion and Brand Loyalty
For millions of consumers, their first smartphone will be a low-cost PayGo smartphone.
This creates a unique opportunity for:
Brand loyalty: first-time users often stay within the same ecosystem for future upgrades.
Customer retention: as consumers upgrade, brands benefit from repeat sales and services.
Capturing these early-stage users drives digital inclusion while planting the seed for long-term revenue growth through upgrades, accessories, and digital services.
5. Future Growth and Innovation
Thanks to rapidly declining component costs, economies of scale, and manufacturing efficiencies, even low-cost smartphones now deliver features once reserved for premium devices from 4G/5G connectivity to AI-powered tools.
Innovation is no longer confined to the high-end market. Affordable smartphones and PayGo smartphones are now leading digital transformation across emerging markets.
Insights from Upya
The true opportunity lies not only in selling hardware, but in building robust financing, distribution, and management models around it.
💡 Low-cost smartphones + PayGo smartphone financing = digital inclusion at scale.
For operators, distributors, and financial service providers, sustainability comes from technology that:
Manages credit risk
Protects assets
Strengthens customer relationships
➡️ Exactly where Upya excels.
Manufacturers are investing heavily in the PayGo smartphones segment not just to sell devices, but to connect billions of people to the digital economy. With PayGo technology and smart operational support, the industry can expand reach, empower communities, and reshape markets.
At Upya, we are proud to enable companies to scale their PayGo smartphone operations sustainably and effectively.
